Westamerica Bancorporation (WABC) investor relations material

Executive summary

• Net income for Q3 2025 was $28.3 million ($1.12 EPS), down 19.4% year-over-year and 2.8% sequentially; nine-month net income was $88.4 million ($3.40 EPS), down from $106.9 million ($4.01 EPS) year-over-year.

• Lower net interest and noninterest income drove the decline, partially offset by reduced noninterest expense and tax provision.

• The Federal Reserve reduced the target federal funds rate to 3.75–4.00% in October 2025, with ongoing economic uncertainty and inflation concerns.

• Operating efficiency remained strong, with 40% of revenue spent on operating costs.

• $0.46 per share dividend paid and 488,000 shares repurchased in Q3 2025.

Financial highlights

• Net interest and loan fee income (FTE) for Q3 2025 was $53.8 million, down 13.8% year-over-year and 1.3% sequentially; nine-month total was $164.8 million, down from $192.7 million.

• Noninterest income for Q3 2025 was $10.2 million, a 14.9% decrease year-over-year; nine-month total was $30.8 million, down from $32.5 million.

• Noninterest expense for Q3 2025 was $25.8 million, down 1.9% year-over-year; nine-month total was $76.5 million, down from $78.5 million.

• Total assets at quarter-end were $5.91 billion, a 4.0% decrease year-over-year; total loans outstanding were $741.6 million, down 11.1% year-over-year.

• Allowance for credit losses on loans was $11.9 million, down 22.6% year-over-year.

Outlook and guidance

• Management continues to monitor inflation, monetary policy, and industry volatility, noting potential risks from liquidity, deposit outflows, and unrealized losses on securities.

• The company expects to maintain regulatory capital levels above well-capitalized thresholds and continue paying quarterly dividends.

• Management emphasized continued focus on low-cost operations and high capital ratios.

• Forward-looking statements highlight risks from economic conditions, competition, and regulatory changes.